I love dave and I respect a lot of things he says. Dave is a son of a rich realtor. He was a millionaire in his early 20s. He will never know how it feels to not be able to afford college
Dave Ramsey, a guy with an estimated net worth of $200 million, sure likes to talk DOWN to people who don't have the funds or the resources to attend college. Like Meagan said, it should be looked at as an investment in your future. The problem is the cost which has gone up exponentially.
Maybe it's because Dave knows that a lot of people that go to college don't end up with the professional and financial success they were guaranteed by those selling the lie that you cannot be successful without a college education.
I'd hate to believe that college could one day be available only to the wealthy and elite. Our higher education system is broken and that's what needs to be fixed!
I recall in the mid 90s listening to Dave while folding newspapers for my paper route. I lived in East TN and he wasn't nationwide yet. He said avoid student loans at all costs then and debt in general. It was key to my decision to join the military (yes most do it for the $ as the main motivation, get over it!). I avoided student loans and got an graduate engineering degree... his advice worked for me!
Dave's answer to medical school or vet school is to work throughout, pay cash tuition, or find an employer (in healthcare) who will pay for your degree. Or only go somewhere where you get a full ride scholarship. Also, state support for public universities has dramatically decreased over the past few decades which is part of the reason they have increased tuition. When you could get a degree for $10,000 total a large part of the university funding came from the state and federal governments.
I went back and commented on some of his old student loan rant post that I got student loan forgiveness for PSLF and how he was WRONG. Stopped short of calling him stupid like he takes pleasure in doing to others. I’m petty but I’m also gracious lol. Calling people stupid and mocking others that are in a desperate situation and seeking help on such a large platform is immoral IMO.
10:37 So doesn’t this actually support the proposition that the reason why the cost of attendance has increased so much over the years is BECAUSE of student loans? In other words, b/c everyone and their mother (literally, lol) can borrow money for college, the natural supply/demand mechanics would push the cost of college up. Honest question.
Perhaps we could bring down the cost of attendance by only providing loans for schools that are able to meet a value per dollar benchmark for students. An important detail would be establishing a legitimate metric for defining value. Education is an important social and personal investment that needs sustainable structural support.
@caseycooper2381 That's an interesting consideration. I'd advocate for the value of knowledgeable and insightful historians in every community though. The term "value" gets murky when applied beyond finance, but it's worthwhile to discuss the values we need to support with our money. Too many people are concluding college with the burden of debt consuming their capacity to contribute, create, or innovate.
@@questions1234 Unfortunately many of these degrees are simply work avoidance degrees. I would've preferred to major in history... but I majored in engineering because I wanted to earn a good living. I worked much harder than the liberal arts and social science students did. Now I see history majors wanting me to pay more in taxes to pay for their student loan... No! Now I have more leisure time, so I get to learn history on my own without paying for it.
I don't always agree with Ramsey but in this case, he's right. If you don't have the money to get an undergraduate degree, you definitely should not get into student loan debt to do it. Go to community college for the first two years and get units that are transferable to a public university and work. Graduate school is a different story, it's strictly ROI and it's the student who needs to take on the obligation, not the parent. Believe me, I know what the f**k I'm talking about. I had student loan debt for 26 years and I would not wish it on anybody.
I did this and don’t disagree, but also don’t totally agree. I worked 2 years after high school while living at home, saved everything (like everything. Bought bread & eggs with coupons and made egg salad sandos at work with the free mustard, mayo, salt, & pepper packets in the lunch room), and bought a small starter home at 20 with 2 roomies to make the mortgage pencil out. Worked 2 more years to build a small nest egg, then worked my way through community college half time in the evenings over 3 years. 4.18 GPA, no scholarships, no debt, & an associates degree at 25. Got my bachelors in another 3 years of night school at 28, 3.98 GPA, no scholarships at the state school in my hometown, and only $9k of debt. Worked full time during the day through it all at increasingly good jobs and paid what I could for school as I went. Worked 2 more years at an engineering job, paid off my undergrad loans, saved some living expense money, then started law school at 30. Only allowed to work half time through law school, so I worked the full allowable amount while school was in session, then full time plus over breaks and summers. $140k in law school debt from my in-state law school. Took a public interest job for PSLF. 124 months of certified public interest employment down, but missing 9 payments from when I was in deferment over the years, whilst moving for government jobs and in escrow on different houses after moving. Applied for PSLF buyback but have been on hold since August. Started my career at 33 and talks of PSLF and Dept of Ed going away now have me thinking I should have just barreled through, finished earlier, sought PSLF for it all before PSLF was at risk of going away, rather than working and paying as I went. Also, my earning potential went up with each degree. So my pay as I went strategy cost me increased earnings by delaying them to work as I went & not having the $ to invest in retirement with compounding interest. With the volatility of student loan repayment and forgiveness plans today, coupled with the growing cost of education and high interest rates charged on student loans, I’m not sure I’d recommend school to today’s youth. Your ROI decreases the longer it takes you to finish because your working/earning years decrease the later you start your career. So working your way through has its drawbacks in terms of delaying your career/higher earning. And loans have drawbacks because they’ve become so politicized, it’s hard to know what repayment plans will even be available in 4-7 years when you’re done with school, let alone in the 10-20 years after you graduate whilst in repayment.
@@steveshow-tos5394 would you say there are an over supply of lawyers?... I would! Not quite sure how you financially justified leaving engineering and going 140k in debt to go to law school... but its your choice. When it comes to borrowed money being able to pay it back while still being better off than your baseline case is all that matters... your passion, interest, feelings are irrelevant. You were smart enough to do engineering, you did it frugally and now you are hoping a government program doesn't stop so the decision wasn't a lifelong financial disaster. I wish you the best but please tell people that there was a lesson here!
I don't agree with you on this. You say the colleges are at fault. It is the governments fault for not revamping the system. Of course the colleges will charge what ever they can knowing they are getting the money from the government via student loans
I love dave and I respect a lot of things he says. Dave is a son of a rich realtor. He was a millionaire in his early 20s. He will never know how it feels to not be able to afford college
Thanks for your input!
Dave Ramsey went bankrupt.
Dave Ramsey, a guy who was gifted his career & higher education from his parents. Sound familiar? Someone else pulled up his boot straps.
Dave Ramsey, a guy with an estimated net worth of $200 million, sure likes to talk DOWN to people who don't have the funds or the resources to attend college. Like Meagan said, it should be looked at as an investment in your future. The problem is the cost which has gone up exponentially.
Definitely -- thanks for sharing!
Maybe it's because Dave knows that a lot of people that go to college don't end up with the professional and financial success they were guaranteed by those selling the lie that you cannot be successful without a college education.
I think we can all name degrees that will never pay off... it's not a cost problem, it's a utility problem
I'd hate to believe that college could one day be available only to the wealthy and elite. Our higher education system is broken and that's what needs to be fixed!
I recall in the mid 90s listening to Dave while folding newspapers for my paper route. I lived in East TN and he wasn't nationwide yet. He said avoid student loans at all costs then and debt in general. It was key to my decision to join the military (yes most do it for the $ as the main motivation, get over it!). I avoided student loans and got an graduate engineering degree... his advice worked for me!
Thanks for sharing!
Dave's answer to medical school or vet school is to work throughout, pay cash tuition, or find an employer (in healthcare) who will pay for your degree. Or only go somewhere where you get a full ride scholarship. Also, state support for public universities has dramatically decreased over the past few decades which is part of the reason they have increased tuition. When you could get a degree for $10,000 total a large part of the university funding came from the state and federal governments.
I can say so much about Dave Ramsey that's wrong. But I get somebody who knows all about him in trouble. Legally.
I went back and commented on some of his old student loan rant post that I got student loan forgiveness for PSLF and how he was WRONG. Stopped short of calling him stupid like he takes pleasure in doing to others. I’m petty but I’m also gracious lol. Calling people stupid and mocking others that are in a desperate situation and seeking help on such a large platform is immoral IMO.
Thanks for sharing! Yes, there is a lot of misconceptions about PSLF. We're hoping to continue to educate folks on their forgiveness options.
How do you become a certified student loan professional?
This blog touches on that and links to other CSLP resources: www.studentloanplanner.com/certified-student-loan-professional/
10:37 So doesn’t this actually support the proposition that the reason why the cost of attendance has increased so much over the years is BECAUSE of student loans? In other words, b/c everyone and their mother (literally, lol) can borrow money for college, the natural supply/demand mechanics would push the cost of college up. Honest question.
Perhaps we could bring down the cost of attendance by only providing loans for schools that are able to meet a value per dollar benchmark for students. An important detail would be establishing a legitimate metric for defining value. Education is an important social and personal investment that needs sustainable structural support.
It's not just the schools. It's the major. A history degree from MIT isn't worth much more than one from a bottom tier school.
@caseycooper2381 That's an interesting consideration. I'd advocate for the value of knowledgeable and insightful historians in every community though.
The term "value" gets murky when applied beyond finance, but it's worthwhile to discuss the values we need to support with our money. Too many people are concluding college with the burden of debt consuming their capacity to contribute, create, or innovate.
@@questions1234 Unfortunately many of these degrees are simply work avoidance degrees. I would've preferred to major in history... but I majored in engineering because I wanted to earn a good living. I worked much harder than the liberal arts and social science students did. Now I see history majors wanting me to pay more in taxes to pay for their student loan... No! Now I have more leisure time, so I get to learn history on my own without paying for it.
I don't always agree with Ramsey but in this case, he's right. If you don't have the money to get an undergraduate degree, you definitely should not get into student loan debt to do it. Go to community college for the first two years and get units that are transferable to a public university and work. Graduate school is a different story, it's strictly ROI and it's the student who needs to take on the obligation, not the parent. Believe me, I know what the f**k I'm talking about. I had student loan debt for 26 years and I would not wish it on anybody.
I did this and don’t disagree, but also don’t totally agree. I worked 2 years after high school while living at home, saved everything (like everything. Bought bread & eggs with coupons and made egg salad sandos at work with the free mustard, mayo, salt, & pepper packets in the lunch room), and bought a small starter home at 20 with 2 roomies to make the mortgage pencil out. Worked 2 more years to build a small nest egg, then worked my way through community college half time in the evenings over 3 years. 4.18 GPA, no scholarships, no debt, & an associates degree at 25. Got my bachelors in another 3 years of night school at 28, 3.98 GPA, no scholarships at the state school in my hometown, and only $9k of debt. Worked full time during the day through it all at increasingly good jobs and paid what I could for school as I went. Worked 2 more years at an engineering job, paid off my undergrad loans, saved some living expense money, then started law school at 30. Only allowed to work half time through law school, so I worked the full allowable amount while school was in session, then full time plus over breaks and summers. $140k in law school debt from my in-state law school.
Took a public interest job for PSLF. 124 months of certified public interest employment down, but missing 9 payments from when I was in deferment over the years, whilst moving for government jobs and in escrow on different houses after moving. Applied for PSLF buyback but have been on hold since August. Started my career at 33 and talks of PSLF and Dept of Ed going away now have me thinking I should have just barreled through, finished earlier, sought PSLF for it all before PSLF was at risk of going away, rather than working and paying as I went. Also, my earning potential went up with each degree. So my pay as I went strategy cost me increased earnings by delaying them to work as I went & not having the $ to invest in retirement with compounding interest.
With the volatility of student loan repayment and forgiveness plans today, coupled with the growing cost of education and high interest rates charged on student loans, I’m not sure I’d recommend school to today’s youth. Your ROI decreases the longer it takes you to finish because your working/earning years decrease the later you start your career. So working your way through has its drawbacks in terms of delaying your career/higher earning. And loans have drawbacks because they’ve become so politicized, it’s hard to know what repayment plans will even be available in 4-7 years when you’re done with school, let alone in the 10-20 years after you graduate whilst in repayment.
@@steveshow-tos5394 would you say there are an over supply of lawyers?... I would! Not quite sure how you financially justified leaving engineering and going 140k in debt to go to law school... but its your choice. When it comes to borrowed money being able to pay it back while still being better off than your baseline case is all that matters... your passion, interest, feelings are irrelevant. You were smart enough to do engineering, you did it frugally and now you are hoping a government program doesn't stop so the decision wasn't a lifelong financial disaster. I wish you the best but please tell people that there was a lesson here!
Thanks for sharing!
Wrong! Priviledged..... Look at yourself in the mirror.
People are too quick to judge and talk about others.
I don't agree with you on this. You say the colleges are at fault. It is the governments fault for not revamping the system. Of course the colleges will charge what ever they can knowing they are getting the money from the government via student loans
Thanks for your input! Always interested in others' thoughts.
Some people need to be yelled at about money!!!